Key Highlights From Budget 2024: Major Focus On Employment, Skilling, MSMEs; New Tax Regime Slabs Announced

In her straight seventh budget, Finance Minister Nirmala Sitharaman on Tuesday identified nine priorities for generating ample opportunities.

The priorities include Productivity and Resilience in Agriculture, Employment and Skilling and Manufacturing and Services "This Budget envisages sustained efforts on the following nine priorities for generating ample opportunities for all - Productivity and Resilience in Agriculture, Employment and Skilling, Inclusive Human Resource Development and Social Justice, Manufacturing and Service, Urban Development, Energy Security, Infrastructure, Innovation, Research and Development and Next Generation Reforms. Subsequent budgets will build on these and add more priorities and actions," the FM said.

The Prime Minister's package of 5 schemes and initiatives to facilitate employment, skilling and other opportunities for 4.1 crore youth over 5 years with a central outlay of Rs 2 lakh crores. The government is making a provision of Rs 1.48 lakh crore for education, employment and skilling in 2024.

How Govt Plans To Boost Job Creation

First-Time Employment Scheme: This initiative offers one month's wage to new workforce entrants across all sectors, aiming to benefit 2.1 crore youths. Eligible individuals will receive a direct benefit transfer (DBT) of up to Rs 15,000, provided in three instalments, for those with a monthly salary of up to Rs 1 lakh.

Job Growth Incentive Plan: This innovative scheme targets both employees and employers during the first four years of employment. It includes reimbursement of Rs 3,000 per month to employers for EPFO contributions for each additional employee. This plan is expected to create 50 lakh new jobs and support 30 lakh youths, focusing on all employment with salaries up to Rs 1 lakh per month.

Model Skill Loan Scheme Revision: The government has significantly revised the Model Skill Loan Scheme, now offering loans up to Rs 7.5 lakh backed by a government guarantee fund. This revision is projected to benefit 25,000 students annually. Additionally, higher education loans up to Rs 10 lakh will be supported for domestic institutions, and 1 lakh students will receive e-vouchers each year.

Massive Bonanza For Bihar, AP

Bihar and Andhra Pradesh got special attention in the budget 2024 as the JDU and TDP are the key partners of the NDA.

The budget allocated Rs 26,000 crore to Bihar for several infrastructure and development needs. This funding will support major road projects, including the Patna-Purnea expressway, Buxar-Bhagalpur highway, Bodhgaya-Rajgir-Vaishali-Darbhanga corridor, and a new two-lane bridge over the Ganga in Buxar. Also, the development of an industrial node in Gaya is set to boost the eastern region's growth. The budget also includes plans for new airports, medical colleges, sports infrastructure, and a 2,400 MW power plant at Pirpainti, with an overall investment of Rs 21,400 crore in power projects.

For Andhra Pradesh, the budget outlines a commitment of Rs 15,000 crore for the development of Amaravati, the state's new capital, as part of the Andhra Pradesh Reorganisation Act. This support will be facilitated through multilateral agencies, with further financial provisions expected in future years.

Finance Minister Nirmala Sitharaman highlighted these allocations as part of the NDA government's broader strategy to advance regional development and fulfill commitments made to its key allies.

Internship Opportunities

The Finance Minister announced a new initiative, aimed at providing internship opportunities for 1 crore youth across 500 leading companies over the next five years. This scheme will offer a monthly allowance of Rs 5,000 for interns, along with a one-time assistance of Rs 6,000.

The National Cooperation Policy is expected to foster overall development, while financial support will be extended for higher education loans up to Rs 10 lakh for domestic institutions. These measures are designed to enhance career prospects and support both working women and students pursuing advanced education.

1 Crore Farmers Into Natural Farming

Sitharaman said, "New 109 high-yielding and climate resilient varieties of 32 field and horticulture crops will be released for cultivation by farmers. In the next 2 years, 1 crore farmers will be initiated into natural farming supported by certification and branding. This year the allocation for agriculture and allied sectors is Rs 1.52 lakh crore."

Housing

Finance Minister Nirmala Sitharaman announced major urban and rural housing initiatives in Budget 2024. The PM Awas Yojana-Urban 2.0 will invest Rs 10 lakh crore to address the housing needs of 1 crore poor and middle-class families, with Rs 2.2 lakh crore in central assistance over the next five years. The PM Suryaghar Muft Bijli Yojana will provide free rooftop solar panels to 1 crore households, offering up to 300 units of free electricity each month.

Also, dormitory-style rental housing for industrial workers will be developed through public-private partnerships.

New Tax Regime Slabs Changed

The middle-class got a relief as the government is set to increase the standard deduction under the new tax regime from Rs 50,000 to Rs 75,000.

In her budget speech, Finance Minister Nirmala Sitharaman announced revisions to tax slabs in the new regime. This will help the salaried class to save up to Rs 17,500 in the new regime.

The new Tax structure under new tax regime is here:

• Rs 0-3 lakh : Nil
• Rs 3-7 lakh: 5%
• Rs 7-10 lakh: 10%
• Rs 10-12 lakh: 15%
• Rs 12-15 lakh: 20%
• Above ₹ 15 lakh: 30%

Angel Tax Abolished

To support the start-up ecosystem, the government has abolished the angel tax for all types of investors. Angel tax is imposed on capital raised by unlisted companies from Indian investors if the share price exceeds the company's fair market value. The excess amount is considered income and taxed accordingly.